Financial results for the four months ended July 31, 2023
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Expenditure for the period April to July 2023 amounted to HK$243.4 billion and revenue HK$99.7 billion, resulting in a cumulative year-to-date deficit of HK$97.1 billion after taking into account the proceeds of HK$46.6 billion received from issuance of green bonds under the Government Green Bond Programme (Green Bond).
A Government spokesperson said that the cumulative year-to-date deficit for the period was mainly due to the fact that some major types of revenue including salaries and profits taxes are mostly received towards the end of a financial year.
The fiscal reserves stood at HK$737.7 billion as at July 31, 2023.
Detailed figures are shown in Tables 1 and 2.
TABLE 1. CONSOLIDATED ACCOUNT (Note 1)
| Month ended July 31, 2023 HK$ million |
Four months ended July 31, 2023 HK$ million |
|
| Revenue | 25,512.2 | 99,712.8 |
| Expenditure | (67,339.8) | (243,443.0) |
| Deficit before issuance of Green Bond |
(41,827.6) | (143,730.2) |
| Proceeds received from issuance of Green Bond |
- | 46,632.0 |
| Deficit after issuance of Green Bond |
(41,827.6) | (97,098.2) |
| Financing | ||
| Domestic | ||
| Banking Sector (Note 2) | 42,072.8 | 89,972.3 |
| Non-Banking Sector | (245.2) | 7,125.9 |
| External | - | - |
| Total | 41,827.6 | 97,098.2 |
Government Debts as at July 31, 2023 (Note 3)
HK$168,220 million
Debts Guaranteed by Government as at July 31, 2023 (Note 4)
HK$147,005 million
TABLE 2. FISCAL RESERVES
| |
Month ended July 31, 2023 HK$ million |
Four months ended July 31, 2023 HK$ million |
| Fiscal Reserves at start of period | 779,519.2 | 834,789.8 |
| Consolidated Deficit after issuance of Green Bond |
(41,827.6) | (97,098.2) |
| Fiscal Reserves at end of period (Note 5) |
737,691.6 | 737,691.6 |
Notes:
1. This Account consolidates the General Revenue Account and the following eight Funds: Capital Works Reserve Fund, Capital Investment Fund, Civil Service Pension Reserve Fund, Disaster Relief Fund, Innovation and Technology Fund, Land Fund, Loan Fund and Lotteries Fund. It excludes the Bond Fund, the balance of which is not part of the fiscal reserves. The Bond Fund balance as at July 31, 2023, was HK$258,028 million.
2. Includes transactions with the Exchange Fund and resident banks.
3. These were the Green Bonds (equivalent to HK$168,220 million as at July 31, 2023) issued under the Government Green Bond Programme. They were denominated in US dollars (US$9,750 million with maturity from May 2024 to January 2053), euros (4,500 million euros with maturity from January 2025 to November 2041), Renminbi (RMB30,000 million with maturity from November 2024 to June 2033) and Hong Kong dollars (HK$20,800 million with maturity from February 2024 to May 2025). They do not include the outstanding bonds with nominal value of HK$214,620 million and alternative bonds with nominal value of US$1,000 million (equivalent to HK$7,797 million as at July 31, 2023) issued under the Government Bond Programme (with proceeds credited to the Bond Fund). Of these bonds under the Government Bond Programme (including Silver Bonds with nominal value of HK$86,620 million, which may be redeemed before maturity upon request from bond holders), bonds with nominal value of HK$1,500 million were repaid upon maturity on August 18, 2023; bonds with nominal value of HK$65,499 million will mature within the period from September 2023 to July 2024 and the rest within the period from August 2024 to May 2042.
4. Includes guarantees provided under the SME Loan Guarantee Scheme launched in 2001, the Special Loan Guarantee Scheme launched in 2008, the SME Financing Guarantee Scheme launched in 2012 and a commercial loan of the Hong Kong Science and Technology Parks Corporation.
5. Includes HK$307,253 million, being the balance of the Land Fund held in the name of "Future Fund", for long-term investments up to December 31, 2030. The Future Fund also includes HK$4,800 million, being one-third of the actual surplus in 2015-16 as top-up.
Ends/Thursday, August 31, 2023
Issued at HKT 16:30
Issued at HKT 16:30
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